New Jersey Senate Bill S117

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.

Impact

The bill introduces significant changes to state laws governing how public utilities can bill customers for costs arising from necessary infrastructure upgrades prompted by private construction projects. These upgrades are connected to efforts that customers take in their own properties to protect against damages from natural events. By specifying that utilities cannot pass these costs onto consumers if they comply with the certification requirement, the legislation aims to alleviate financial stresses on consumers while holding utilities accountable for their responsibilities.

Summary

Senate Bill 117, introduced in the New Jersey legislature, focuses on the relationship between public utility companies and their customers regarding costs incurred from infrastructure upgrades linked to qualified construction projects. The bill mandates that customers who complete such construction — aimed at mitigating damages from natural disasters — must certify these efforts to the Board of Public Utilities and their respective utility providers within 90 days of completion. This regulation ensures that utilities can only recover infrastructure upgrade costs without burdening customers unless those customers fail to provide the required certification.

Contention

Challenges surrounding the bill may stem from debates over its implications for public utility financing and the balance of responsibility between utility companies and their customers. Some critics may argue that while the bill is designed to protect consumers, it could also disincentivize utility providers from proactively upgrading infrastructure when no immediate cost recovery is assured. Furthermore, the timeline provided for certification may be seen as too restrictive, potentially complicating compliance for customers.